EUR/USD Current price: 1.2909
The EUR/USD recovered ground ahead of the US opening after suffering a kneejerk early Europe reaching a daily low of 1.2906.The bearish leg is now being attributed to an error: Spanish 10Y yields surged back above 6%, due to a bond maturity “confusion”. Stocks also suffered with the news, yet already erased most of the lost ground: market awaits positive numbers in the Q3 earnings reports for several big US companies. The EUR/USD hourly chart shows price resuming the downside and nearing daily low after stalling near its 20 SMA around 1.2970 area, immediate resistance level, while indicators aim lower below their midlines. In the 4 hours chart technical readings still head south while 20 SMA stands near 1.3000. Overall, the technical picture remains bearish, with chances of a test of key support level around 1.2880 although this last won’t be easy to break.
Support levels: 1.2930 1.2905 1.2880
Resistance levels: 1.2970 1.3000 1.3030
GBP/USD Current price: 1.6004
The GBP/USD trades below the base of the daily descendant channel broken yesterday, still looking heavy despite range bound. The hourly chart shows price heading lower below a flat 20 SMA, with indicators around their midlines yet biased lower. In the 4 hours chart technical indicators are losing part of their bearish strength due stalling in oversold levels, still far from suggesting a recovery. Stops lay below the 1.5990 and if triggered, the bearish momentum will likely resume in the short term.
Support levels: 1.5990 1.5940 1.5910
Resistance levels: 1.6030 1.6060 1.6090
USD/JPY Current price: 78.31
The USD/JPY consolidates in between 100 and 200 SMA’s, holding a pretty neutral stance in the hourly chart, with indicators flat right below their midlines. The overall market sentiment continues to favor the downside although dollar demand at the time being is limiting slides in the pair. In bigger time frames, the technical outlook favors the downside as the pair faltered at 100 DMA early week. 77.90 is the key support to follow for the upcoming sessions, as once below, a retest of 77.10/30 area seems likely.
Support levels: 78.10 77.90 77.65
Resistance levels: 78.50 78.80 79.10
AUD/USD: Current price: 1.0215
The AUD/USD recovery extended today to 1.0246, but seems there is not enough buying interest around for the commodity currency that heads lower amid US opening, testing its 1 hour SMA and with indicators heading lower still above their midlines. A short term ascendant trend line offers support around 1.0200, yet the pair holds to its bearish tone as bigger time frames show indicators in negative territory. A retest of the 1.0150/60 area seems likely for the upcoming hours if risk sentiment continues to deteriorate.
Support levels: 1.0200 1.0160 1.0120
Resistance levels: 1.0235 1.0270 1.0300
Today's new term is Outright Monetary Transaction.